Which panel of Figure 3.3 represents the changes in the market for textbooks when the cost of paper decreases and the government increases the number of student loans it grants?

What is expansionary fiscal policy? What is contractionary fiscal policy?

What will be an ideal response?

The business cycle consists of four phases. At the top we have:

A. expansion, followed by peak, and then trough followed by a recession. B. expansion, followed by a recession, and then peak followed by recession. C. peak, then a trough followed by a recession, and then expansion. D. peak, then a recession followed by a trough, and finally, recovery.